KSh 16.9 Billion Allocated to Universities Fund for Scholarships: What It Means for Kenya’s Higher Education

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 The Numbers at a Glance

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 What Is the Universities Fund (UF)?

The Universities Fund is a government agency established under the Universities Act (2012) to manage public financing for universities. Its primary role is to allocate government funds to public universities based on performance, equity, and policy priorities.

However, in 2023, the Fund was restructured to support individual students through scholarships, in tandem with the Higher Education Loans Board (HELB) — which continues to handle the loan component.

This KSh 16.9B allocation directly feeds into this revamped model, where students are funded based on their level of financial need rather than a blanket subsidy to the university.

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 Who Benefits from This Scholarship Allocation?

The scholarship model has 4 tiers of financial need:

1. Vulnerable

2. Extremely needy

3. Needy

4. Less needy

According to Education CS Ezekiel Machogu, approximately:

• 45% of applicants qualify as vulnerable or extremely needy

• 35% fall into the needy category

• 20% are classified as less needy

This translates to:

• ~65,000 students getting 80%–100% scholarships

• ~50,000 students receiving partial scholarships and loans

• ~30,000 students getting minimal or no scholarship, but full access to loans

Key Policy Note: The government will not fund students in private universities under this model.

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 Case Study: A Student from Kisii County

Let’s consider Brian Onyango, a first-year student admitted to Moi University for a BSc in Education. Coming from a family that earns below KSh 15,000/month, Brian qualifies as "vulnerable."

Under the new model:

• 85% of his tuition (KSh 120,000) = KSh 102,000 funded via scholarship

• He receives a HELB loan of KSh 20,000 for upkeep

• Total out-of-pocket = ~KSh 5,000 for meals & personal expenses

Under the old model, his parents would have paid at least KSh 50,000. The relief is immediate and measurable.

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 What About the Universities?

Public universities have long been financially strained. Many, including Kenyatta University, Egerton, and Moi University, have reported cumulative debts exceeding KSh 65 billion combined.

This new funding model is designed to:

• Improve cash flow predictability for universities

• Encourage performance-based funding in the future

• Allow universities to admit students more selectively based on capacity

However, critics argue that:

• Universities may inflate fees to cover deficits

• The model might underfund programs with higher costs (like Medicine or Engineering)

• Administrative overhead for means-testing students may burden the system

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 Behind the Scenes: How Funding Is Determined

To apply for funding, students must:

1. Apply to KUCCPS for course placement

2. Register on the HELB portal for a loan application

3. Submit a Means Testing Instrument (MTI) on the Universities Fund Portal

The MTI assesses:

• Parent/guardian income

• Number of dependents

• Special needs status

• Geographic marginalization

• Orphanhood or single-parent status

Students are scored and ranked — those with the highest need are prioritized for scholarships.

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 Voices from the Ground

“I almost gave up joining university, but now I can report with dignity.”

– Naomi M., First-year Law Student, University of Nairobi

“We’ve had to freeze certain programs because the promised disbursements came late.”

– Dean, Faculty of Agriculture, Egerton University

“Funding education is not just about fees — what about rent, books, food?”

– Student Leader, Moi University

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 The Bigger Picture: Kenya’s Education Equity Agenda

Kenya’s Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA) prioritize equity in education. The 16.9B allocation advances:

• SDG 4: Ensure inclusive and equitable quality education

• SDG 1: Reduce poverty by enabling access to higher education

• SDG 10: Reduce inequalities, especially for rural learners

However, to fully realize these goals, Kenya must:

• Improve data transparency

• Integrate skills-based scholarships (TVET)

• Increase funding for postgraduate research

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 KBN Summary Breakdown

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 Final Thoughts

The KSh 16.9B allocation is a positive step in reforming Kenya’s higher education financing — a pivot from subsidizing institutions to supporting individual learners based on need.

But success depends not just on the numbers, but on efficiency, transparency, and continuous monitoring.

KBN Verdict: A well-intended reform with huge potential — but execution will determine impact.

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